It seems data-center construction is propping up most of the industry’s economy.

A recent report from Allianz Commercial highlights emerging trends in the worldwide data center boom. The report, titled “The Data Center Construction Boom—Emerging Risk Trends in the Global Build-out,” states that the push to scale data-center infrastructure is being driven by increasing demand for cloud and AI computing, with major technology firms investing tens to hundreds of billions of dollars in large-scale facilities. This expansion is taking place across established and emerging regions—from the U.S. and China to Europe and the Middle East.

However, this rapid growth also brings heightened risk and complexity. Major risk factors include: power supply bottlenecks as grid infrastructure struggles to keep up; outages caused primarily by electrical issues or human error; supply-chain constraints for critical components; and natural-hazard exposure from climate and geographic concentration. The report underscores that while the boom has momentum, stakeholders need robust risk management, planning and resilience strategies to ensure the build-out remains sustainable.

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